NEW YORK (MarketWatch) — “Federal regulators said Monday they have filed charges against three former Fannie Mae (FNM) executives, former Chairman and CEO Franklin Raines, former Vice Chairman and Chief Financial Officer J. Timothy Howard, and former Senior Vice President and Controller Leanne G. Spencer. The Office of Federal Housing Enterprise Oversight (OFHEO)said the charges, ‘reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public.’ OFHEO said it will seek civil penalties of up to $100 million from the former executives, and the return of bonuses totaling up to $115 million from the three.”

It is interesting, though, that the SEC isn’t involved and it is left to the obscure OFHEO to step up to the plate. Remember that the SEC is only after vulnerable bulletin board pump ‘n dumpers, not the wealthy and politically connected unless they do something to make it personal (like Martha, who got smart with them).

Mr. Potato Head, you have it coming.